How should we design our enterprises for a new future? I explore the topic of how to adapt our organizations to today's technological and network realities at Intersection 2014 this week in Paris.
By deliberately engaging in design thinking while applying social business, change management, and transformation, we can create new sustainable, community-oriented businesses that can outperform. Here's how.
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How will the enterprise
operate at the end of this
decade?
How will we get there?
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The Opportunity
• Our conception of business
has changed in the digital
age
• Evidence now shows that the
industrial age model of the
enterprise is in widespread
decline
- Including failing to engage our
most important asset: Workers
• We need better models to
build our organizations upon
• But the details of these news
models are not very well
captured and codified yet
• How can we better capture
the opportunity and change?
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The shift of power and control to communities
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As a result, our institutions aren’t very durable today
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Dachis Group
The future: The Next Generation Enterprise
• Well-organized to deal with rapid
change as the norm
• Fostering sustainable resource
flows instead of static resource stocks
(infrastructure, information, people, etc.)
• Fundamentally network-centric and social in
the way it organizes its technology, people,
and business models
• Part of a much larger ecosystem that can be
tapped into for growth, fueling change, and
may other positive outcomes
• Fundamentally embraces digital business
models and the constantly emerging new
delivery methods for them
• Deeply applies the power laws to greatly
reduce costs, increase virtually all upsides,
and avoid disruption from those that are
also applying them
What is social?
Simply it means
that conversation is
open, participative,
and shared by
default.
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Dachis Group
The Premise: The Ongoing Merging of the Enterprise and Community
workforce
market
point-to-point
interactions
in legacy mediums
traditional
business
most
work is
achieved
off the network
by owned
resources
digital/social
convergence
• New structures: Holistic business
networks, borderless organizations,
community-centric outcomes
• New dynamics: Open (crowdsouced)
business processes, collaborative
economies, max scale value creation
network-centric inflection point
most work is achieved
on the network
by online communities
(internal/external/hybrid)
social
business
next-generation
(digital/social) enterprise
business
communities
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Adjuvi LLC
Examples of new community-led business...
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• Story of Valve: A major company that is entirely non-hierarchical
and self-organized
• Story of Intuit: A company that used mass peer production with its
customers to create breakthrough customer care
See case study in Social Business By Design
• Story of Fold.It: An online community that solves some of the
scientific communities largest problems using outsiders
And open source
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A Class-Leading Example
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“A Team-Based, Flat Lattice
Organization”
“How we work at Gore sets us apart. Since Bill Gore
founded the company in 1958, Gore has been a team-
based, flat lattice organization that fosters personal
initiative. There are no traditional organizational
charts, no chains of command, nor predetermined
channels of communication.
Instead, we communicate directly with each other and
are accountable to fellow members of our multi-
disciplined teams. We encourage hands-on
innovation, involving those closest to a project in
decision making. Teams organize around
opportunities and leaders emerge. This unique kind
of corporate structure has proven to be a significant
contributor to associate satisfaction and retention.”
Key stats for W.L Gore:
10,197 employees
$3.2B revenue (2013)
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We’ve learned that extensively community-
oriented organizations get outsized benefits
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Source: McKinsey Web 2.0 Survey
Only fully social organizations can tap into the
$1.3 trillion social business opportunity
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But we still have many challenges
• 96% of internal and external social business efforts
are not connected
- Source:
• Yet that’s where the most value is, by far
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Workforce engagement is another challenge
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The opportunity: In most companies, the majority of employees are not well engaged
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Yet the benefits of better engagement
could not be more clear...
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Does technology even improve employee engagement?
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(Yes, dots in red.)
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We’ve also learned that collaboration cannot
be isolated from work
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The next-generation enterprise is...
part of a single continuum...
one unified ecosystem
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Social Businessenterprise ecosystem
customers +
world
business partners
workers
Social
Innovation Crowdsourcing
Social CRM
Social Workforce
Social Marketing
Customer Communities
integrated vision
intranet
extranet
Internet
The Lesson:
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A difficult industry lesson:
To succeed with new modes of work, we must create
digital org structures to engage at scale
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And we have a large digital/social palette we must use
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Key Point: This is a minimum view of digital strategy today
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We Must Also Design for Emergent Outcomes
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Key Point: Because communities create many additional, rich outcomes
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Adjuvi LLC
In other words...
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Design for
Loss of Control
*
* Full credit due the great JP Rangaswami
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But are the traditional, linear models for change the best?
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Peter Senge's Growth Processes of Profound Change
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Credit: Mark Foden
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Getting to the core: A simple sustainable model that
will handle disruptive, cyclical, constant change
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Adjuvi LLC
Change points for the new enterprise
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Technology
Culture
Structure
Process
new types of devices
smart mobility
open APIs
social media
new UXs
comfort with self-service
app stores
tech savviness
predilection for sharing
desire for work flexibility
expectations of
job security
virtualization of workforce
social media communities
peer production
crowdsourcing
user generated content
social business processes
networks of networks
non-hierarchical
management
wearable tech
big data
community management
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Do we need strategy to get there?
• Do they make sure we don’t
forget what’s most important?
- To leverage everyone’s lessons
learned?
- To let the network do the work
- To be the conduit and co-shaper of
the outcomes
- To cultivate and wield social capital
• Can social business meet our
expectations if it only delivers
what is planned?
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Perhaps that’s not even the right question
• Can we apply new frameworks
broadly to
- Most industries?
- Most geographies?
- Most corporate cultures?
• Will they work most of the time?
• What will they provide us?
- Lower risk?
- Faster results?
- Better results?
- Is there any evidence of this?
• Or do they lock us into what has only
happened before?
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Looking at Organization for the New Enterprise
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New Intrinsic Processes for Engagement
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Deliberate Enterprise-Scale Strategies for Change
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Incremental change means incremental results.
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Strategic Organization and New Org Structures
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Engagement Processes that Scale
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Org Structures for Scaling “Working out loud”
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Begin
Open Work
Request
Participation
Create Initial
Work Seed
and/or
Open Work InitiatorLegend Community Participant
Make Direct
Contribution
Discuss Open
Work Effort
Co-Curate Open
Work Effort
Community
Management
Start
Finish
End Open
Work Effort
Definitions
Open Work
A social business work
process where anyone
can contribute. You
choose the boundaries
of the community.
Co-Curation
Community-based
decisions on the best
contributions to integrate
into the ultimate open
work effort.
Community Management
The process of 1) drawing in
the participants, 2) managing
their engagement, 3)
enforcing standards, and 4)
eliciting their participation.
This is community management, but what else?
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Closing Loop: Turning Data and Engagement into Action
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All aimed at tomorrow’s very different worker
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Source: Cengage
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Adjuvi LLC
And incorporating the new top level modes of work
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Do we need frameworks to attain the next-gen org?
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If so, do we have what we need?
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Next-generation business architecture
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Adding design and management to community
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Creating a standard technical foundation for digital community
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But can we change our DNA with just a plan?
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What if frameworks aren’t necessarily the best
approach?
• What if things like heuristics are?
- One of the reasons we went with the 10
tenets in #SocBiz By Design
• What if we really need updated
management theory instead?
• Can a framework ever really have
everything we need to succeed?
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The Ten Tenets of Social Business
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Because if we forget what
makes new modes of work special...
• Community-led and open
business processes
• Emergent and self-organizing
outcomes
• More transparency, more
available knowledge
• Better engagement,
everywhere
• High-scale and cost effective
results
• Network effects
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...then there is no point
Supporting Trends:
• BYOT
• Big data
• Shadow IT
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There is a broad pattern in frameworks for
next-gen orgs emerging however...
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• Decentralization
• User-control
• Need to cope with
constant change
• Adaptive processes
• Local autonomy
• Sustainable
transformation
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Functional next-gen frameworks seem to be most effective
• Specializing in a specific
capability
- Marketing and sales
- Supply chain (especially exception
handling)
- Project management
- Customer care
- Product innovation
- Community management
- Advocacy
• Implication: A custom framework
of proven functional frameworks
seems to be best
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In the end, what most organizations need...
• Is guidance and a way to cross check their journey
• To build on the shoulders of those that came
before
• And to make sure they haven’t forgotten anything
- Especially fundamental principles
• In other words...
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So most orgs end up building their own
And mostly they are relatively informal.
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Summing Up: Designing the New Enterprise
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In other words...
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Design for
Continuous,
Emergent Change
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But the best ones do it with community
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This is what most successful next-gen orgs are doing
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And We Can Continuously Change, By Design, Together
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The full story is in Social Business by Design
• Published May, 2012
• From John Wiley & Sons
• The definitive management
strategy guide and handbook
on social business.
• Based on real-world
experience from nearly 100
high-impact examples.
• The most complete and
actionable statement on
social business and why it’s
strategically vital.
• Recently #1 in Amazon’s Hot
New Releases
• Companion Web site at
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http://socialbusinessbydesign.com